Prices are rising. The pandemic, the war in the Ukraine and supply chain issues are making gas, groceries, and other necessities more expensive to buy. Credit-card interest rates (and balances) are climbing too.

As balances increase, your utilization ratio increases too. A utilization ratio refers to the amount of your available credit you are using. When you tap a higher percentage of the total credit you have, you may negatively influence your credit score.

Card companies and other lenders keep an eye on how much of your available credit you actually use: The lower the percentage of the total, the more favorably you’ll be scored.

Here are three more ways you can minimize the impact of inflation on your credit score:

1. Transfer current credit-card debt to a new card with a lower interest rate. Find a zero-percent APR credit card that lets you avoid paying interest on new purchases (and balance transfers) for a limited time. Take advantage of an offer that gives you the chance to catch up.
2. Consolidate credit-card debt. Talk to your banker about a personal loan or reach out to your mortgage company about a loan based on the equity in your home. Interest rates in both scenarios are almost always lower than those associated with credit cards.
3. Avoid missing a credit-card payment. Your payment history is the biggest factor into how credit scores are calculated. Don’t risk losing your access to credit during this inflationary time. Consider setting up automatic payment plans to make sure you stay in good standing.

In today’s inflationary times, consumers are wise to consider delaying major purchases if possible, and to sell surplus items.

• Now is not an ideal economic environment for buying high-priced goods and services. Demand is strong for items like cars and homes, making them more expensive.
• On the flip side, now could be a good time to put high-value assets on the market, including vehicles (cars, boats, RVs) and vacation homes.

In inflationary times it’s smart to check your VantageScore credit score to keep tabs on inflation’s impact on your consumer standing. You can access your free VantageScore from a variety of providers.

This information is for educational purposes only and does not constitute legal advice. VantageScore results may vary and not all lenders use VantageScore or may use a different version of a VantageScore credit scoring model.  All third-party brand marks are the property of their respective owners and do not necessarily imply product endorsement or affiliation with VantageScore. While VantageScore attempts to verify the accuracy and availability of the listed products and services, it cannot guaranty the accuracy and availability of such products and services and all information in this article is presented without any warranty.